FX levels to watch – EUR/USD, GBP/USD, AUD/USD

The turmoil in equity markets has not spread to FX, where moves remain relatively ordered.

EUR/USD sticks to the range

Yesterday’s losses saw the EUR/USD price head towards the bottom end of the range that has prevailed since 25 January.

Dips down to $1.2323 tend to find buyers, while surges to $1.25 have twice now met with selling. The first target on the upside is $1.2735, while below $1.2323, the $1.2165 level comes into play. Range traders will note that the price remains oversold on the four-hour chart, so a bounceback is a distinct possibility.

GBP/USD looks primed for a recovery

Here too the possibility of a bounce for GBP/USD is increasing. Buyers have come in to hold the $1.3943 level, with the potential for a rebound towards $1.43 and $1.4345, the high from late January.

A close below $1.43 creates a lower high that may see selling develop. Below $1.3943, the $1.3836 and then $1.36 levels come into play.

AUD/USD finds buyers at support

The sell-off took the price of AUD/USD to $0.7835, but buyers have appeared to defend the level.

The steady losses of the past week have put a dent in the December rally, but if the price can move back above $0.7950 then further gains are likely. Below $0.7835, the $0.78 level comes into play, and then the rising 200-day simple moving average (SMA), currently at $0.7748. 

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